Myntra's justification to charge GST on MRP
If any of the MRP officials believe in acting, immediate notices must be issued to Myntra company for adopting this unfair trade practices and misleading consumers.
How is the GST amount decided?
Following rules will govern whether or not additional GST will be applicable on the products purchased by you:
GST applicability: For a product, if the fulfillment is done on or after July 1st, 2017 and total discount percentage is more than 19% of MRP, then GST may be collected from customer in addition to product price, post discounts. The discounts include those resulting from special offers such as Buy 1 Get 1 and similar offers.
GST amount: If applicable, the amount of GST collected from customer depends on category
Apparel/Clothing: Max 12% of net payable (MRP - product discount - coupon discount) will be collected from the customer.
Footwear: Max 18% of net payable (MRP - product discount - coupon discount) will be collected from the customer.
Home Furnishing: Min. 5% - Max. 28% of net payable (MRP - product discount - coupon discount) will be collected from the customer.
Accessories/Other Categories: Max 28% of net payable (MRP - product discount - coupon discount) will be collected from the customer. The amount of GST shown at the cart level is a mere estimate. The actual GST payable shall be determined basis the warehouse (based on availability of the products) from where the goods are being shipped, which will be checked once the order is placed. Only in case of GST being lower than the estimate GST (based on the warehouse from where the goods would be shipped), the customer would be notified of the same and any additional GST paid by the customer would be duly refunded to the customer. more
How is the GST amount decided?
Following rules will govern whether or not additional GST will be applicable on the products purchased by you:
GST applicability: For a product, if the fulfillment is done on or after July 1st, 2017 and total discount percentage is more than 19% of MRP, then GST may be collected from customer in addition to product price, post discounts. The discounts include those resulting from special offers such as Buy 1 Get 1 and similar offers.
GST amount: If applicable, the amount of GST collected from customer depends on category
Apparel/Clothing: Max 12% of net payable (MRP - product discount - coupon discount) will be collected from the customer.
Footwear: Max 18% of net payable (MRP - product discount - coupon discount) will be collected from the customer.
Home Furnishing: Min. 5% - Max. 28% of net payable (MRP - product discount - coupon discount) will be collected from the customer.
Accessories/Other Categories: Max 28% of net payable (MRP - product discount - coupon discount) will be collected from the customer. The amount of GST shown at the cart level is a mere estimate. The actual GST payable shall be determined basis the warehouse (based on availability of the products) from where the goods are being shipped, which will be checked once the order is placed. Only in case of GST being lower than the estimate GST (based on the warehouse from where the goods would be shipped), the customer would be notified of the same and any additional GST paid by the customer would be duly refunded to the customer. more
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If it had labelled the articles/products as "MRP, exclusive of taxes", then the customer is liable to pay GST. If it is mentioned as "MRP, inclusive of taxes", charging GST to unfair trade practice.” more
Jul 15
I think the Govt. has not given clarification on the issue of GST and MRP. It was required to be given to know the difference of price structure before and after 1-7-2017 .Before 1-7-2017 it was inclusive MRP. Point to be cleared is whether GST is inclusive of MRP or exclusive MRP. Whether MRP has no concerned while calculation of assessable value for GST? more
Jul 14
Why GST should be charged over MRP?It should be included in MRP.This becomes confusing for the general public. more
Jul 13
I don't see any issue as long as total of MRP-discount-Coupon discount+GST is lower than MRP. more
Jul 13
